Dubai: Gold prices fall by up to Dh10; 24K drops to Dh481.50
Gold prices came down by as much as Dh10 during the day on Monday with the market remaining choppy on a mix of technical and fundamental concerns, experts said.
Gold prices in Dubai hit Dh481.50 per gram for 24K on Monday evening against Dh491.50 at the start of the day’s trade. 22K, 21K and 18K also slipped to Dh445.50 from Dh455, Dh427.25 from Dh436.25, and Dh366.25 from Dh374 per gram, respectively.
Spot gold prices fell by 3 percent to $3989.5 per ounce at 8:38 pm UAE time. At the same time, silver prices also dropped 3.84 percent to $46.75, after falling steadily throughout the session.
“Technically, gold had been driven higher for nine weeks straight by bulls until the previous week, with the RSI staying in overbought territory since early September,” Wu added. “The concentration of bullish positions at that point became excessive and overdue for a healthy corrective pullback.”
The metal had climbed to record highs and gold prices touched a record high of Dh525.25 on October 21 amid a range of supportive factors. Since then, the yellow metal has seen its sharpest one-day drop in more than a decade, declining by over 6 per cent. Gold and jewellery customers who purchased during Diwali at peak prices found their investments declining in value.
US-China trade talks
Speaking of the reasons, Nishin Thaslim, Chairman of Nishka Jewelry, said that international affairs have played a part in the downtrend. “One reason is that the trade war between China and the US is almost coming to an end,” he said. “This has led to increased global optimism and a decline in the gold prices.”
Dilin added that market participants are also hoping that China may loosen up on rare earth export restrictions and that the Trump administration could extend the 90-day tariff pause, which is easing geopolitical uncertainties.
“Consequently, safe-haven flows that had supported gold earlier shifted back into risk assets,” she said. “This, coupled with the CME’s 5.2 percent hike in gold and silver margin requirements in the short-term, damped buying momentum.”
She added that gold is expected to trade in a “neutral to slightly bearish range this week,” depending on risk sentiment and key economic developments.
“With the October rate cut already largely priced in, all eyes are on Powell’s tone following the FOMC decision: an acknowledgment of cooling inflation and an end to balance sheet runoff would reinforce expectations for a 25bp December cut and support gold,” she said. “Conversely, a focus on lingering tariff effects or policy uncertainty could weigh on prices.
Beyond data, the US-China leaders’ meeting at APEC could be a potential catalyst: an event confirmation of concessions without escalation is likely to dent safe-haven demand, imparting short-term pressure.”
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